More borrowers are being encouraged to take advantage of some of the lowest home loan rates in history, following a new survey by one of Australia’s biggest comparison websites, finder.com.au, which found about two in five mortgage holders (39 percent) have not switched providers in the past decade – an estimated 1.17 million households.
By not switching home loans or asking for a discount with their current lender, these households are potentially wasting a combined $27.4 million per month, $328.2 million per year or a staggering $9.9 billion over 30 years. This was based on receiving just 0.10 percentage points off the national average mortgage size of $379,400 with the current average variable home loan rate of 5.20 percent according to finder.com.au.
According to the survey the average borrower could be potentially wasting $280 per year or $8,415 over a 30-year loan term.
In addition, many banks are offering cash payments up to $2,000 to switch to them.
If you would like to save money on your loan, please contact your Chan & Naylor Finance specialist.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.